Cable One, Inc. (NYSE: CABO) (the “Company” or “Cable One”)
today reported financial and operating results for the quarter
ended June 30, 2024.
Three Months Ended June
30,
(dollars in
thousands)
2024
2023
$ Change
% Change
Revenues
$
394,461
$
424,024
$
(29,563
)
(7.0
)%
Net income
$
47,649
$
55,246
$
(7,597
)
(13.8
)%
Net profit margin
12.1
%
13.0
%
Cash flows from operating activities
$
155,548
$
169,564
$
(14,016
)
(8.3
)%
Adjusted EBITDA(1)
$
212,372
$
231,294
$
(18,922
)
(8.2
)%
Adjusted EBITDA margin(1)
53.8
%
54.5
%
Capital expenditures
$
71,592
$
81,507
$
(9,915
)
(12.2
)%
Adjusted EBITDA less capital
expenditures(1)
$
140,780
$
149,787
$
(9,007
)
(6.0
)%
"We believe our strategic initiatives intended to drive
penetration deeper across all market segments are setting the stage
for sustainable long-term growth," said Julie Laulis, Cable One
President and CEO. "Despite challenges such as the discontinuation
of the Affordable Connectivity Program ("ACP") and typical seasonal
headwinds, the underlying fundamentals of both residential and
business data additions and retention levels maintained positive
momentum during the second quarter, with both connects and
disconnects improving year-over-year for the second consecutive
quarter."
Second Quarter 2024 Summary:
- Residential data primary service units ("PSUs") decreased by
approximately 4,200 sequentially, of which approximately 4,000
related to the expiration of the ACP during the second quarter.
Business data PSUs increased by 500 sequentially.
- Net income was $47.6 million in the second quarter of 2024
compared to $55.2 million in the second quarter of 2023. Adjusted
EBITDA was $212.4 million in the second quarter of 2024 compared to
$231.3 million in the second quarter of 2023. Net profit margin was
12.1% and Adjusted EBITDA margin was 53.8%.
- Net cash provided by operating activities was $155.5 million in
the second quarter of 2024 compared to $169.6 million in the second
quarter of 2023. Adjusted EBITDA less capital expenditures was
$140.8 million in the second quarter of 2024 compared to $149.8
million in the second quarter of 2023.
- Total revenues were $394.5 million in the second quarter of
2024 compared to $424.0 million in the second quarter of 2023.
- The Company paid $17.1 million in dividends during the second
quarter of 2024.
- The Company repaid $50.0 million under its revolving credit
facility (the "Revolver") during the second quarter of 2024.
____________________
(1)
Adjusted EBITDA, Adjusted EBITDA margin
and Adjusted EBITDA less capital expenditures are defined in the
section of this press release entitled “Use of Non-GAAP Financial
Measures.” Adjusted EBITDA and Adjusted EBITDA less capital
expenditures are reconciled to net income, Adjusted EBITDA margin
is reconciled to net profit margin and Adjusted EBITDA less capital
expenditures is also reconciled to net cash provided by operating
activities. Refer to the “Reconciliations of Non-GAAP Measures”
tables within this press release.
Second Quarter 2024 Financial Results Compared to Second
Quarter 2023
Revenues were $394.5 million in the second quarter of 2024
compared to $424.0 million in the second quarter of 2023.
Residential data revenues decreased $16.4 million, or 6.7%,
year-over-year due primarily to a 6.9% decrease in average revenue
per unit. Residential video revenues decreased $9.0 million, or
13.5%, year-over-year due primarily to a decrease in residential
video subscribers, partially offset by a rate adjustment enacted
earlier in the year. Business data revenues increased $0.9 million,
or 1.6%, year-over-year, due primarily to an increase in business
data subscribers.
Net income was $47.6 million in the second quarter of 2024
compared to $55.2 million in the prior year quarter. The
year-over-year decrease was due primarily to lower revenues,
partially offset by an $8.5 million reduction in programming costs
resulting from video customer losses, a $5.5 million severance
charge resulting from organizational changes implemented during the
quarter and a $7.7 million gain related to C-band spectrum
relocation funding received from the federal government. Net profit
margin was 12.1% in the second quarter of 2024 compared to 13.0% in
the prior year quarter.
Adjusted EBITDA was $212.4 million and $231.3 million for the
second quarter of 2024 and 2023, respectively. Adjusted EBITDA
margin was 53.8% in the second quarter of 2024 compared to 54.5% in
the prior year quarter.
Net cash provided by operating activities was $155.5 million in
the second quarter of 2024 compared to $169.6 million in the second
quarter of 2023. Capital expenditures for the second quarter of
2024 totaled $71.6 million compared to $81.5 million for the second
quarter of 2023. Adjusted EBITDA less capital expenditures for the
second quarter of 2024 was $140.8 million compared to $149.8
million in the prior year quarter.
Liquidity and Capital Resources
At June 30, 2024, the Company had $201.5 million of cash and
cash equivalents on hand compared to $190.3 million at December 31,
2023. The Company’s debt balance was $3.57 billion and $3.68
billion at June 30, 2024 and December 31, 2023, respectively. The
Company had $238.0 million of borrowings and $762.0 million
available for borrowing under the Revolver as of June 30, 2024.
The Company paid $17.1 million in dividends to stockholders
during the second quarter of 2024.
The Company repaid $50.0 million under the Revolver during the
second quarter of 2024 and repaid an additional $50.0 million in
July 2024.
The Company's capital expenditures by category for the three
months ended June 30, 2024 and 2023 were as follows (in
thousands):
Three Months Ended June
30,
2024
2023
Customer premise equipment(1)
$
15,411
$
13,061
Commercial(2)
2,955
11,725
Scalable infrastructure(3)
9,472
7,086
Line extensions(4)
18,372
10,758
Upgrade/rebuild(5)
7,288
13,818
Support capital(6)
18,094
25,059
Total
$
71,592
$
81,507
____________________
(1)
Customer premise equipment includes costs
incurred at customer locations, including installation costs and
customer premise equipment (e.g., modems and set-top boxes).
(2)
Commercial includes costs related to
securing business services customers and PSUs, including small and
medium-sized businesses and enterprise customers.
(3)
Scalable infrastructure includes costs not
related to customer premise equipment to secure growth of new
customers and PSUs or provide service enhancements (e.g., headend
equipment).
(4)
Line extensions include network costs
associated with entering new service areas (e.g., fiber/coaxial
cable, amplifiers, electronic equipment, make-ready and design
engineering).
(5)
Upgrade/rebuild includes costs to modify
or replace existing fiber/coaxial cable networks, including
betterments.
(6)
Support capital includes costs associated
with the replacement or enhancement of non-network assets due to
technological and physical obsolescence (e.g., non-network
equipment, land, buildings and vehicles) and capitalized internal
labor costs not associated with customer installation
activities.
Conference Call
Cable One will host a conference call with the financial
community to discuss results for the second quarter of 2024 on
Thursday, August 1, 2024, at 5 p.m. Eastern Time (ET).
The conference call will be available via an audio webcast on
the Cable One Investor Relations website at ir.cableone.net or by
dialing 1-888-800-3155 (International: 1-646-307-1696) and using
the access code 1202376. Participants should register for the
webcast or dial in for the conference call shortly before 5 p.m.
ET.
A replay of the call will be available from August 1, 2024 until
August 15, 2024 at ir.cableone.net.
Additional Information Available on Website
The information in this press release should be read in
conjunction with the condensed consolidated financial statements
and notes thereto contained in the Company’s Quarterly Report on
Form 10-Q for the period ended June 30, 2024, which will be posted
on the “SEC Filings” section of the Cable One Investor Relations
website at ir.cableone.net when it is filed with the Securities and
Exchange Commission (the “SEC”). Investors and others interested in
more information about Cable One should consult the Company’s
website, which is regularly updated with financial and other
important information about the Company.
Use of Non-GAAP Financial Measures
The Company uses certain measures that are not defined by
generally accepted accounting principles in the United States
(“GAAP”) to evaluate various aspects of its business. Adjusted
EBITDA, Adjusted EBITDA margin, Adjusted EBITDA less capital
expenditures and capital expenditures as a percentage of Adjusted
EBITDA are non-GAAP financial measures and should be considered in
addition to, not as superior to, or as a substitute for, net
income, net profit margin, net cash provided by operating
activities or capital expenditures as a percentage of net income
reported in accordance with GAAP. Adjusted EBITDA and Adjusted
EBITDA less capital expenditures are reconciled to net income,
Adjusted EBITDA margin is reconciled to net profit margin and
capital expenditures as a percentage of Adjusted EBITDA is
reconciled to capital expenditures as a percentage of net income.
Adjusted EBITDA less capital expenditures is also reconciled to net
cash provided by operating activities. These reconciliations are
included in the “Reconciliations of Non-GAAP Measures” tables
within this press release.
“Adjusted EBITDA” is defined as net income plus net interest
expense, income tax provision, depreciation and amortization,
equity-based compensation, severance and contract termination
costs, acquisition-related costs, net (gain) loss on asset sales
and disposals, system conversion costs, rebranding costs, net
equity method investment (income) loss, net other (income) expense
and any special items, as provided in the “Reconciliations of
Non-GAAP Measures” tables within this press release. As such, it
eliminates the significant non-cash depreciation and amortization
expense that results from the capital-intensive nature of the
Company’s business as well as other non-cash or special items and
is unaffected by the Company’s capital structure or investment
activities. This measure is limited in that it does not reflect the
periodic costs of certain capitalized tangible and intangible
assets used in generating revenues and the Company’s cash cost of
debt financing. These costs are evaluated through other financial
measures.
“Adjusted EBITDA margin” is defined as Adjusted EBITDA divided
by total revenues.
“Adjusted EBITDA less capital expenditures,” when used as a
liquidity measure, is calculated as net cash provided by operating
activities excluding the impact of capital expenditures, net
interest expense, amortization of debt discount and issuance costs,
income tax provision, changes in operating assets and liabilities,
change in deferred income taxes and certain other items, as
provided in the “Reconciliations of Non-GAAP Measures” tables
within this press release.
“Capital expenditures as a percentage of Adjusted EBITDA” is
defined as capital expenditures divided by Adjusted EBITDA.
The Company uses Adjusted EBITDA, Adjusted EBITDA margin,
Adjusted EBITDA less capital expenditures and capital expenditures
as a percentage of Adjusted EBITDA to assess its performance, and
it also uses Adjusted EBITDA less capital expenditures as an
indicator of its ability to fund operations and make additional
investments with internally generated funds. In addition, Adjusted
EBITDA generally correlates to the measure used in the leverage
ratio calculations under the Company’s credit agreement and the
indenture governing the Company’s non-convertible senior unsecured
notes to determine compliance with the covenants contained in the
credit agreement and the ability to take certain actions under the
indenture governing the non-convertible senior unsecured notes.
Adjusted EBITDA less capital expenditures is also a significant
performance measure that has been used by the Company in its
incentive compensation programs. Adjusted EBITDA does not take into
account cash used for mandatory debt service requirements or other
non-discretionary expenditures, and thus does not represent
residual funds available for discretionary uses.
The Company believes that Adjusted EBITDA, Adjusted EBITDA
margin and capital expenditures as a percentage of Adjusted EBITDA
are useful to investors in evaluating the operating performance of
the Company. The Company believes that Adjusted EBITDA less capital
expenditures is useful to investors as it shows the Company’s
performance while taking into account cash outflows for capital
expenditures and is one of several indicators of the Company’s
ability to service debt, make investments and/or return capital to
its stockholders.
Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBITDA less
capital expenditures, capital expenditures as a percentage of
Adjusted EBITDA and similar measures with similar titles are common
measures used by investors, analysts and peers to compare
performance in the Company’s industry, although the Company’s
measures of Adjusted EBITDA, Adjusted EBITDA margin, Adjusted
EBITDA less capital expenditures and capital expenditures as a
percentage of Adjusted EBITDA may not be directly comparable to
similarly titled measures reported by other companies.
About Cable One
Cable One, Inc. (NYSE:CABO) is a leading broadband
communications provider committed to connecting customers and
communities to what matters most. Through Sparklight® and the
associated Cable One family of brands, the Company served more than
one million residential and business customers in 24 states as of
June 30, 2024. Powered by a fiber-rich network, the Cable One
family of brands provide residential customers with a wide array of
connectivity and entertainment services, including Gigabit speeds,
advanced Wi-Fi and video. For businesses ranging from small and
mid-market up to enterprise, wholesale and carrier, the Company
offers scalable, cost-effective solutions that enable businesses of
all sizes to grow, compete and succeed.
CAUTIONARY STATEMENT REGARDING
FORWARD-LOOKING STATEMENTS
This communication may contain “forward-looking statements” that
involve risks and uncertainties. These statements can be identified
by the fact that they do not relate strictly to historical or
current facts, but rather are based on current expectations,
estimates, assumptions and projections about the Company’s
industry, business, strategy, acquisitions and strategic
investments, market expansion plans, announced organizational
changes, dividend policy, capital allocation, financing strategy,
ability to fund the purchase price payable if the put option
associated with the remaining equity interests in Mega Broadband
Investments Holdings LLC ("MBI") is exercised, financial results
and financial condition. Forward-looking statements often include
words such as “will,” “should,” “anticipates,” “estimates,”
“expects,” “projects,” “intends,” “plans,” “believes” and words and
terms of similar substance in connection with discussions of future
operating or financial performance. As with any projection or
forecast, forward-looking statements are inherently susceptible to
uncertainty and changes in circumstances. The Company’s actual
results may vary materially from those expressed or implied in its
forward-looking statements. Accordingly, undue reliance should not
be placed on any forward-looking statement made by the Company or
on its behalf. Important factors that could cause the Company’s
actual results to differ materially from those in its
forward-looking statements include government regulation, economic,
strategic, political and social conditions and the following
factors, which are discussed in the Company’s latest Annual Report
on Form 10-K as filed with the SEC:
- rising levels of competition from historical and new entrants
in the Company’s markets;
- recent and future changes in technology, and the Company's
ability to develop, deploy and operate new technologies, service
offerings and customer service platforms;
- the Company’s ability to continue to grow its residential data
and business data revenues and customer base;
- increases in programming costs and retransmission fees;
- the Company’s ability to obtain hardware, software and
operational support from vendors;
- risks that the Company may fail to realize the benefits
anticipated as a result of the Company's purchase of the remaining
interests in Hargray Acquisition Holdings, LLC that the Company did
not already own;
- risks relating to existing or future acquisitions and strategic
investments by the Company, including risks associated with the
potential exercise of the put option associated with the remaining
equity interests in MBI;
- risks that the implementation of the Company’s new enterprise
resource planning and billing systems disrupt business
operations;
- the integrity and security of the Company’s network and
information systems;
- the impact of possible security breaches and other disruptions,
including cyber-attacks;
- the Company’s failure to obtain necessary intellectual and
proprietary rights to operate its business and the risk of
intellectual property claims and litigation against the
Company;
- legislative or regulatory efforts to impose network neutrality
and other new requirements on the Company’s data services;
- additional regulation of the Company’s video and voice
services;
- the Company’s ability to renew cable system franchises;
- increases in pole attachment costs;
- changes in local governmental franchising authority and
broadcast carriage regulations;
- changes in government subsidy programs;
- the potential adverse effect of the Company’s level of
indebtedness on its business, financial condition or results of
operations and cash flows;
- the restrictions the terms of the Company’s indebtedness place
on its business and corporate actions;
- the possibility that interest rates will continue to rise,
causing the Company’s obligations to service its variable rate
indebtedness to increase significantly;
- risks associated with the Company’s convertible
indebtedness;
- the Company’s ability to continue to pay dividends;
- provisions in the Company’s charter, by-laws and Delaware law
that could discourage takeovers and limit the judicial forum for
certain disputes;
- adverse economic conditions, labor shortages, supply chain
disruptions, changes in rates of inflation and the level of move
activity in the housing sector;
- pandemics, epidemics or disease outbreaks, such as the COVID-19
pandemic, have, and may in the future, disrupt the Company's
business and operations, which could materially affect the
Company's business, financial condition, results of operations and
cash flows;
- lower demand for the Company's residential data and business
data products;
- fluctuations in the Company’s stock price;
- dilution from equity awards, convertible indebtedness and
potential future convertible debt and stock issuances;
- damage to the Company’s reputation or brand image;
- the Company’s ability to retain key employees (whom the Company
refers to as associates);
- the Company’s ability to incur future indebtedness;
- provisions in the Company’s charter that could limit the
liabilities for directors; and
- the other risks and uncertainties detailed from time to time in
the Company’s filings with the SEC, including but not limited to
those described under "Risk Factors" in its latest Annual Report on
Form 10-K and in its subsequent filings with the SEC.
Any forward-looking statements made by the Company in this
communication speak only as of the date on which they are made. The
Company is under no obligation, and expressly disclaims any
obligation, except as required by law, to update or alter its
forward-looking statements, whether as a result of new information,
subsequent events or otherwise.
CABLE ONE, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Unaudited)
Three Months Ended June
30,
(dollars in
thousands, except per share data)
2024
2023(1)
Change
% Change
Revenues:
Residential data
$
230,404
$
246,840
$
(16,436
)
(6.7
)%
Residential video
57,178
66,137
(8,959
)
(13.5
)%
Residential voice
8,203
9,507
(1,304
)
(13.7
)%
Business data
56,687
55,792
895
1.6
%
Business other
18,663
21,020
(2,357
)
(11.2
)%
Other
23,326
24,728
(1,402
)
(5.7
)%
Total Revenues
394,461
424,024
(29,563
)
(7.0
)%
Costs and Expenses:
Operating (excluding depreciation and
amortization)
105,845
112,804
(6,959
)
(6.2
)%
Selling, general and administrative
90,770
86,173
4,597
5.3
%
Depreciation and amortization
85,314
87,240
(1,926
)
(2.2
)%
(Gain) loss on asset sales and disposals,
net
2,395
2,767
(372
)
(13.4
)%
Total Costs and Expenses
284,324
288,984
(4,660
)
(1.6
)%
Income from operations
110,137
135,040
(24,903
)
(18.4
)%
Interest expense, net
(34,964
)
(38,737
)
3,773
(9.7
)%
Other income (expense), net
(641
)
(6,593
)
5,952
(90.3
)%
Income before income taxes and equity
method investment income (loss), net
74,532
89,710
(15,178
)
(16.9
)%
Income tax provision
17,774
20,949
(3,175
)
(15.2
)%
Income before equity method investment
income (loss), net
56,758
68,761
(12,003
)
(17.5
)%
Equity method investment income (loss),
net
(9,109
)
(13,515
)
4,406
(32.6
)%
Net income
$
47,649
$
55,246
$
(7,597
)
(13.8
)%
Net Income per Common Share:
Basic
$
8.48
$
9.76
$
(1.28
)
(13.1
)%
Diluted
$
8.16
$
9.36
$
(1.20
)
(12.8
)%
Weighted Average Common Shares
Outstanding:
Basic
5,620,592
5,660,751
(40,159
)
(0.7
)%
Diluted
6,029,382
6,070,996
(41,614
)
(0.7
)%
Unrealized gain (loss) on cash flow hedges
and other, net of tax
$
(693
)
$
21,711
$
(22,404
)
(103.2
)%
Comprehensive income
$
46,956
$
76,957
$
(30,001
)
(39.0
)%
____________________
(1)
Interest and investment income for the
three months ended June 30, 2023 has been reclassified from Other
income (expense), net, to Interest expense, net, to conform to the
current year presentation.
CABLE ONE, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited)
(dollars in
thousands, except par values)
June 30, 2024
December 31, 2023
Assets
Current Assets:
Cash and cash equivalents
$
201,518
$
190,289
Accounts receivable, net
66,051
93,973
Prepaid and other current assets
71,177
58,116
Total Current Assets
338,746
342,378
Equity investments
1,128,363
1,125,447
Property, plant and equipment, net
1,785,765
1,791,120
Intangible assets, net
2,563,427
2,595,892
Goodwill
928,947
928,947
Other noncurrent assets
82,393
63,149
Total Assets
$
6,827,641
$
6,846,933
Liabilities and Stockholders'
Equity
Current Liabilities:
Accounts payable and accrued
liabilities
$
142,297
$
156,645
Deferred revenue
26,270
27,169
Current portion of long-term debt
18,898
19,023
Total Current Liabilities
187,465
202,837
Long-term debt
3,521,450
3,626,928
Deferred income taxes
972,144
974,467
Other noncurrent liabilities
182,958
169,556
Total Liabilities
4,864,017
4,973,788
Stockholders' Equity:
Preferred stock ($0.01 par value;
4,000,000 shares authorized; none issued or outstanding)
—
—
Common stock ($0.01 par value; 40,000,000
shares authorized; 6,175,399 shares issued; and 5,619,200 and
5,616,987 shares outstanding as of June 30, 2024 and December 31,
2023, respectively)
62
62
Additional paid-in capital
622,150
607,574
Retained earnings
1,886,596
1,825,542
Accumulated other comprehensive income
(loss)
54,326
36,745
Treasury stock, at cost (556,199 and
558,412 shares held as of June 30, 2024 and December 31, 2023,
respectively)
(599,510
)
(596,778
)
Total Stockholders' Equity
1,963,624
1,873,145
Total Liabilities and Stockholders'
Equity
$
6,827,641
$
6,846,933
CABLE ONE, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended June
30,
(in
thousands)
2024
2023
Cash flows from operating
activities:
Net income
$
47,649
$
55,246
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
85,314
87,240
Amortization of debt discount and issuance
costs
2,189
2,274
Equity-based compensation
7,111
5,999
Change in deferred income taxes
(5,628
)
1,354
(Gain) loss on asset sales and disposals,
net
2,396
2,766
Equity method investment (income) loss,
net
9,109
13,515
Fair value adjustments
8,360
6,508
Changes in operating assets and
liabilities:
Accounts receivable, net
(5,521
)
(28,462
)
Prepaid and other current assets
4,081
8,852
Accounts payable and accrued
liabilities
3,560
4,378
Deferred revenue
(809
)
3,859
Other
(2,263
)
6,035
Net cash provided by operating
activities
155,548
169,564
Cash flows from investing
activities:
Cash paid for debt and equity
investments
(20,000
)
(14,704
)
Capital expenditures
(71,592
)
(81,507
)
Change in accrued expenses related to
capital expenditures
(1,749
)
(3,170
)
Proceeds from sales of property, plant and
equipment
575
565
Net cash used in investing activities
(92,766
)
(98,816
)
Cash flows from financing
activities:
Payment of debt issuance costs
—
(198
)
Payments on long-term debt
(54,813
)
(54,719
)
Repurchases of common stock
—
(41,368
)
Payment of withholding tax for equity
awards
(77
)
(122
)
Dividends paid to stockholders
(17,107
)
(16,339
)
Net cash used in financing activities
(71,997
)
(112,746
)
Change in cash and cash equivalents
(9,215
)
(41,998
)
Cash and cash equivalents, beginning of
period
210,733
202,732
Cash and cash equivalents, end of
period
$
201,518
$
160,734
Supplemental cash flow
disclosures:
Cash paid for interest, net of capitalized
interest
$
43,605
$
46,179
Cash paid for income taxes, net of refunds
received
$
26,349
$
17,882
CABLE ONE, INC.
RECONCILIATIONS OF NON-GAAP
MEASURES
(Unaudited)
Three Months Ended June
30,
(dollars in
thousands)
2024
2023
$ Change
% Change
Net income
$
47,649
$
55,246
$
(7,597
)
(13.8
)%
Net profit margin
12.1
%
13.0
%
Plus: Interest expense, net
34,964
38,737
(3,773
)
(9.7
)%
Income tax provision
17,774
20,949
(3,175
)
(15.2
)%
Depreciation and amortization
85,314
87,240
(1,926
)
(2.2
)%
Equity-based compensation
7,111
5,999
1,112
18.5
%
Severance and contract termination
costs
5,544
—
5,544
NM
Acquisition-related costs
209
248
(39
)
(15.7
)%
(Gain) loss on asset sales and disposals,
net
2,395
2,767
(372
)
(13.4
)%
System conversion costs
1,230
—
1,230
NM
Rebranding costs
432
—
432
NM
Equity method investment (income) loss,
net
9,109
13,515
(4,406
)
(32.6
)%
Other (income) expense, net
641
6,593
(5,952
)
(90.3
)%
Adjusted EBITDA
$
212,372
$
231,294
$
(18,922
)
(8.2
)%
Adjusted EBITDA margin
53.8
%
54.5
%
Less: Capital expenditures
$
71,592
$
81,507
$
(9,915
)
(12.2
)%
Capital expenditures as a percentage of
net income
150.2
%
147.5
%
Capital expenditures as a percentage of
Adjusted EBITDA
33.7
%
35.2
%
Adjusted EBITDA less capital
expenditures
$
140,780
$
149,787
$
(9,007
)
(6.0
)%
____________________
NM = Not meaningful.
Three Months Ended June
30,
(dollars in
thousands)
2024
2023
$ Change
% Change
Net cash provided by operating
activities
$
155,548
$
169,564
$
(14,016
)
(8.3
)%
Capital expenditures
(71,592
)
(81,507
)
9,915
(12.2
)%
Interest expense, net
34,964
38,737
(3,773
)
(9.7
)%
Amortization of debt discount and issuance
costs
(2,189
)
(2,274
)
85
(3.7
)%
Income tax provision
17,774
20,949
(3,175
)
(15.2
)%
Changes in operating assets and
liabilities
951
5,338
(4,387
)
(82.2
)%
Change in deferred income taxes
5,628
(1,354
)
6,982
NM
Acquisition-related costs
209
248
(39
)
(15.8
)%
Severance and contract termination
costs
5,544
—
5,544
NM
System conversion costs
1,230
—
1,230
NM
Rebranding costs
432
—
432
NM
Fair value adjustments
(8,360
)
(6,508
)
(1,852
)
28.5
%
Other (income) expense, net
641
6,593
(5,952
)
(90.3
)%
Adjusted EBITDA less capital
expenditures
$
140,780
$
149,787
$
(9,007
)
(6.0
)%
____________________
NM = Not meaningful.
CABLE ONE, INC.
OPERATING STATISTICS
(Unaudited)
As of June 30,
(in thousands,
except percentages and ARPU data)
2024
2023
Change
% Change
Homes Passed
2,809.2
2,733.9
75.2
2.8
%
Residential Customers
992.9
998.8
(5.9
)
(0.6
)%
Data PSUs
963.2
960.1
3.1
0.3
%
Video PSUs
118.8
149.2
(30.4
)
(20.4
)%
Voice PSUs
72.7
84.7
(12.0
)
(14.1
)%
Total residential PSUs
1,154.7
1,193.9
(39.3
)
(3.3
)%
Business Customers
102.8
102.2
0.6
0.6
%
Data PSUs
99.6
97.8
1.7
1.8
%
Video PSUs
7.2
9.0
(1.7
)
(19.2
)%
Voice PSUs
38.9
40.3
(1.4
)
(3.6
)%
Total business services PSUs
145.7
147.1
(1.4
)
(1.0
)%
Total Customers
1,095.7
1,101.0
(5.3
)
(0.5
)%
Total non-video
967.3
940.5
26.9
2.9
%
Percent of total
88.3
%
85.4
%
2.9
%
Data PSUs
1,062.8
1,057.9
4.8
0.5
%
Video PSUs
126.0
158.1
(32.1
)
(20.3
)%
Voice PSUs
111.6
125.0
(13.4
)
(10.7
)%
Total PSUs
1,300.4
1,341.1
(40.7
)
(3.0
)%
Penetration
Data
37.8
%
38.7
%
(0.9
)%
Video
4.5
%
5.8
%
(1.3
)%
Voice
4.0
%
4.6
%
(0.6
)%
Share of Second Quarter
Revenues
Residential data
58.4
%
58.2
%
0.2
%
Business services
19.1
%
18.1
%
1.0
%
Total
77.5
%
76.3
%
1.2
%
ARPU - Second Quarter
Residential data(1)
$
79.36
$
85.20
$
(5.84
)
(6.9
)%
Residential video(1)
$
155.95
$
143.53
$
12.42
8.7
%
Residential voice(1)
$
36.75
$
36.71
$
0.04
0.1
%
Business services(2)
$
244.52
$
251.02
$
(6.50
)
(2.6
)%
____________________
Note: All totals, percentages and
year-over-year changes are calculated using exact numbers. Minor
differences may exist due to rounding.
(1)
ARPU values represent the
applicable quarterly residential service revenues (excluding
installation and activation fees) divided by the corresponding
average of the number of PSUs at the beginning and end of each
period, divided by three, except that for any PSUs added or
subtracted as a result of an acquisition or divestiture occurring
during the period, the associated ARPU values represent the
applicable residential service revenues (excluding installation and
activation fees) divided by the pro-rated average number of PSUs
during such period.
(2)
ARPU values represent quarterly
business services revenues divided by the average of the number of
business customer relationships at the beginning and end of each
period, divided by three, except that for any business customer
relationships added or subtracted as a result of an acquisition or
divestiture occurring during the period, the associated ARPU values
represent business services revenues divided by the pro-rated
average number of business customer relationships during such
period.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240801512701/en/
Trish Niemann Vice President, Communications Strategy
602-364-6372 patricia.niemann@cableone.biz
Todd Koetje Chief Financial Officer
investor_relations@cableone.biz
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